Question
1.) Sarah is 60 years of age and self-employed. During 2020 she reported $100,000 of revenues and $40,000 of expenses relating to her self-employment activities.
1.) Sarah is 60 years of age and self-employed. During 2020 she reported $100,000 of revenues and $40,000 of expenses relating to her self-employment activities. If Sarah has no other retirement accounts in her name, what is the maximum amount she can contribute to a simplified employee pension (SEP) IRA for 2020?
2.) Sarah is 60 years of age and self-employed. During 2020 she reported $500,000 of revenues and $100,000 of expenses relating to her self-employment activities. If Sarah has no other retirement accounts in her name, what is the maximum amount she can contribute to a simplified employee pension (SEP) IRA for 2020?
3.) Sarah is 60 years of age and self-employed. During 2020, she reported $100,000 of revenues and $60,000 of expenses relating to her self-employment activities. If Sarah has no other retirement accounts in her name, what is the maximum amount she can contribute to an individual 401(k) for 2020?
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